How to File a Late S Corporation Election and Still Save on Taxes

Small Business Tax Savings Podcast

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Missed the S Corp deadline? Don’t panic. In this episode, Mike breaks down how to file a late S Corp election the right way so you can still unlock major tax savings. You’ll learn what an S Corp really is, who qualifies, how to calculate your savings, and what to watch out for when making the switch. Plus, the exact steps to file a late election with the IRS, without triggering a red flag.

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Chapters:

(00:57) What Is an S Corp?

An S Corp is a tax status that lets you split income into salary and distributions to lower your self-employment tax.

(02:36) S Corp vs. Sole Proprietor: Tax Savings Example

Mike walks through an $80K income example showing how S Corp status can save over $5,000 in taxes every year.

(05:25) When Should You Elect S Corp Status?

If you’re earning $50K+ in profit and expect to grow, it may be time to switch, but only if you can handle the added costs.

(08:06) Common Mistakes with S Corps

Avoid these pitfalls: no LLC, premature elections, and not paying yourself the right salary.

(12:11) How to File a Late S Corp Election

The IRS allows late elections. Just file Form 2553 with a proper reason and follow the Rev Proc 2013-30 guidelines.

(16:32) Payroll Is Not Optional

If you backdate your election, you must also backdate your payroll. The IRS checks for this, so don’t skip it.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
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🎙 ABOUT THE PODCAST
The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.